By comparing forecasts for labor supply and demand for specific jobs, planners can ascertain whether there will be a labor surplus or a labor shortage for certain job categories. The second step in human resource planning is to define specific goals regarding a desired end and provide benchmarks for determining the relative success of a program aimed at addressing labor surpluses or shortages. There are a number of strategies for addressing the issue of a labor surplus that vary according to expense, speed, effectiveness, amount of human suffering, and irrevocability. There should be a specific timetable for achieving goals.

Each question below gives an option for reducing an expected labor surplus. For each question write down the correct answer based on the speed and amount of human suffering described in the question.

a. In 2015, Argo-Tech purchased the power accessories division of TRW Inc. All employees eligible to retire were encouraged and sometimes forced to do so.
b. In September 2015, the Progressive Insurance Companies announced a reorganization to increase efficiencies and reduce cost. In November 2015, Progressive announced a reduction-in-force of 340 people.
c. When GM downsized its Janesville assembly plant in Wisconsin, some employees were offered an opportunity to stay on board and share job responsibilities with other workers.
d. When a restaurant chain has an employee surplus as one of its locations, it many allow the extra employees to work at another location where there is not a surplus.